Extract from a contract form for the supply of goods to agents on comsignment basis. Contract No.

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Moscow

Vneshnetorgovoje Objedinenije "Rossexport", Moscow, hereinafter referred to as "Rossexport" on the one part, and Messrs. ... hereinafter referred to as the "Agents" on the other part, have concluded the present contract whereby it is agreed as follows:

1. Subject of the contract

Rossexport shall supply to the Agents on consignment basis goods in accordance with the enclosed specification as well as with any further specifications that may be agreed upon between the parties during the period of validity of the present contract for demonstration and sale, the above specifications constituting an integral part of the contract.

The Agents undertake to sell on the territory of... the goods delivered by Rossexport on consignment in their own name and fore their own account.

The period for which the goods are sent on consignment shall not exceed ... months from the date of delivery of the goods.

In case the goods are not sold within the period of consignment the Agents undertake to purchase the goods for their own account and pay Rossexport the full value of same.

The period of consignment can be extended in particular cases only, upon agreement of both parties.

Rossexport have the right to recall the goods prior to the expiration of the stipulated period but not before ... months from the date of delivery of the goods on consignment.

The Agents undertake to procure the necessary licences for the import of the goods to ... and if required for the export of the goods from ...., all expenses connected therewith being borne by ....

2. Organization of work

In connection with the present contract the Agents undertake:

a) to make arrangements to have the goods demonstrated and shown in operation in special show-rooms or on other premises suitable for that purpose;

b) to organize shows of the goods;

c) to set up warehouses adapted for the storage of the goods;

d) to provide advisory services and render technical assistance to purchasers of the goods;

e) to arrange for regular advertising of the goods on show making use of the most efficient forms of publicity and also to issue catalogues, leaflets and other advertising matter, the form and contents of the advertisements being agreed upon with Rossexport;

f) to give quarterly reports to Rossexport regarding the state of the market in respect of goods supplied on consignment under the present contract;

g) to submit reports to Rossexport on the first day of each month regarding both the goods sold and the balance of goods unsold as indicated in the proforma-invoices.

The representatives of Rossexport shall have the right to visit the consignment warehouse and show-rooms with the view of investigating the maintenance of the goods delivered by Rossexport and the arrangements made for their demonstration.

Each item of goods delivered by Rossexport on consignment basis shall bear a plate indicating its name and type and stating that it is exported by V/0 "Rossexport", Moscow, Russia.